The Procurement Software Podcast

EPISODE SUMMARY:Tropic co-founder Justin Etkin (newly appointed CEO) and Head of Procurement Michael Shields join James to unpack how AI is upending traditional software buying. They explain why AI-native spend is growing 82 to 127% year-over-year while overall software spend is only up about 20%, and why consumption-based pricing makes the old seat-based approval playbook useless. The conversation covers Tropic's shift from a services business into a data-driven intelligence platform, the launch of its new AI Consumption Management product, and why 2027 budget season will be far less forgiving of AI overspend than 2026 was. For procurement leaders heading into planning season, it's a practical look at where the real risk, and opportunity, now sits.GUEST BIOS:Justin Etkin co-founded Tropic in 2019 as COO alongside David Campbell, and was named CEO in August 2026 as the company shifted from a services-led procurement business into a proprietary data and AI intelligence platform. Before Tropic, he worked at Bain. Today Tropic manages over $23 billion in software spend and has delivered $425 million in customer savings, drawing on intelligence from more than 100,000 completed negotiations.Michael Shields is Head of Procurement & Strategy at Tropic, where he runs procurement for the company that sells procurement software. He built the procurement function from the ground up at Qualtrics, later led procurement at MX, and began his career at Honeywell. He's also taught supply chain management as an adjunct professor at Brigham Young University and is a well-known voice on LinkedIn for making procurement's business value accessible.KEY TAKEAWAYS:Why running procurement inside a procurement-software company exposes the "reputation problem" the function has, and how data and supplier intelligence is now table stakes, not a nice-to-have.Why AI-native software spend is growing 82 to 127% year-over-year (versus about 20% for software overall), and why that gap comes down to procurement not being in the room early enough.Why consumption-based (token/usage) pricing breaks the old seat-based approval process, and what teams need instead: real-time alerting, commit-vs-actual visibility, and leverage to renegotiate before overages hit.Why 2026's "experimentation pass" on AI budget overruns won't repeat in 2027, since CFOs will expect hard caps and much tighter forecasting.Why market intelligence and benchmarking data, not just workflow or process tools, are becoming the real differentiator procurement teams need to prove their value to finance.Why ignoring mid-tail and long-tail vendor spend, not just the biggest "fathead" contracts, is where the hidden risk and savings are piling up.TIMESTAMPS:[00:02] Guest Introductions: From COO to CEO, and Running Procurement for a Procurement Company[04:25] Tropic's Evolution: From Services Business to Proprietary Data and AI Intelligence Platform[09:20] Why AI-Native Spend Is Outpacing Traditional Software (82 to 127% YoY Growth)[20:00] Inside AI Consumption Management: Tackling Runaway, Usage-Based Spend[24:28] Why Market Intelligence Is Becoming Table Stakes for Procurement Teams[37:19] Usage-Based Pricing's Future, and Where to Learn More About TropicRESOURCES & LINKS:Connect with Justin Etkin on LinkedInConnect with Michael Shields on LinkedInCheck out TropicDownload our Tech Map for Mid-MarketDownload our Tech Map for SMEsFind your perfect procurement tech solution in our Software Finder AppSign up for the EntProc NewsletterBook an Intro Call and let's talk all things Digital Procurement!Connect with James on LinkedIn

EPISODE SUMMARYEshan Jayamanne is the founder and CEO of Krane, an AI-native procurement and material management platform built specifically for construction.In this episode, he explains why 95% of construction procurement is still run on spreadsheets and email, how that gap costs projects time and money, and why general ERPs and project management tools like Procore or Autodesk were never built to solve it. James and Eshan dig into how Krane's AI agents handle the "grunt work" of tracking bids, materials, and lead times while keeping humans firmly in the decision-making loop. It's a sharp look at how AI is starting to change one of construction's most overlooked cost centres.GUEST BIOEshan Jayamanne is the Founder and CEO of Krane, an AI-powered construction supply chain platform. He combines deep construction industry expertise with a background in engineering, analytics, and technology. Before founding Krane in 2023, he worked on major projects for organisations including Microsoft, Chevron, UCSF, and Caltrans, focused on productivity, supply chain optimisation, and lean construction, experience that exposed the industry's persistent procurement and coordination gaps.KEY TAKEAWAYSWhy 95% of construction procurement teams, even on billion-dollar projects, are still coordinating materials through spreadsheets and emailHow a single overlooked lead-time change on a procurement log can quietly derail a construction scheduleWhy general ERPs and construction platforms like Procore and Autodesk solve upstream design coordination but not downstream procurement riskHow Krane's AI agents (like Milo for reading specs and Chase for supplier follow-up) remove admin work while keeping vendor selection decisions with humansWhy building a "data moat" from project to project is becoming a competitive advantage in construction procurementWhy supply chain risk is now considered the second-biggest constraint on data centre builds, after power supplyTIMESTAMPS[00:00] Guest introduction & Krane's rapid growth to $21B in active projects[01:50] The construction site problem that sparked Krane[08:06] Where procurement projects actually fall apart[11:52] Why ERPs and construction industry software tools fall short on procurement[16:39] Inside the AI agents: Milo, Chase, and the human-in-the-loop[28:41] Case studies, the future of AI in construction, and where to find KraneRESOURCES & LINKSConnect with Eshan Jayamanne on LinkedInBook a demo of KraneDownload our Tech Map for Mid-MarketDownload our Tech Map for SMEsFind your perfect procurement tech solution in our Software Finder AppSign up for the EntProc NewsletterBook an Intro Call and let's talk all things Digital Procurement!Connect with James on LinkedIn

EPISODE SUMMARYDheev Arulmani, COO and co-founder of Valdera, joins James to unpack one of procurement tech's most underserved areas: chemicals and raw materials sourcing. He explains why this $6 trillion, hyper-fragmented category breaks generic source-to-pay suites, and how Valdera's verticalised, AI-native approach handles infinite spec permutations, regulation and supplier data. Essential listening for direct materials buyers and anyone weighing up whether to choose a horizontal suite over a specialist platform.GUEST BIODheev Arulmani is co-founder and COO of Valdera, the AI-native sourcing platform for chemicals and raw materials he launched in 2021 with his sister Sruti. Previously an Engagement Manager at McKinsey in its chemicals and agriculture practice, he led supply chain and procurement transformations for large manufacturers. He holds a BS in Chemical Engineering and Economics from MIT and earlier worked in electrochemistry research and venture investing.KEY TAKEAWAYSWhy chemicals can't be sourced like finished goods, infinite spec permutations demand purpose-built data infrastructureHow verticalised platforms beat one-size-fits-all suites for complex categoriesWhy "start small, prove value, scale up" beats boiling the oceanHow storytelling across stakeholders unlocks procurement's real valueTIMESTAMPS[00:02] Meet Dheev and Valdera[05:11] The upstream data problem[07:19] Where legacy suites fall down[32:55] Key skills that direct procurement teams need[34:15] The future of source-to-pay suites[38:14] Where to find ValderaRESOURCES & LINKSConnect with Dheev Arulmani on LinkedInBook a demo of ValderaDownload our Tech Map for Mid-MarketDownload our Tech Map for SMEsFind your perfect procurement tech solution in our Software Finder AppSign up for the EntProc NewsletterBook an Intro Call and let's talk all things Digital Procurement!Connect with James on LinkedIn

EPISODE SUMMARY:In this episode of The Procurement Software Podcast, host James Meads welcomes Andrew Stroup, co-founder and CEO of Leverage AI, to discuss the massive inefficiency hiding in how procurement teams manage purchase orders and track supplier visibility.After leading Project N95, the national clearinghouse for PPE during COVID, Andrew identified a critical gap: supply chains still run on email and spreadsheets, and most SMEs and mid-market manufacturers can't force suppliers to sign up and use their new platforms. Leverage AI solves this by meeting suppliers where they already are, integrating directly with ERPs to automate PO workflows without the friction of custom portals.For procurement leaders managing thousands of supplier relationships, this conversation cuts through the hype around AI and shows what actually works.GUEST BIO:Andrew Stroup is co-founder and CEO of Leverage AI, a supply chain visibility platform for mid-market manufacturers and distributors. He brings an unconventional background: aerospace engineer, Pentagon advisor, White House Fellow under the Obama administration, and operations leader across cybersecurity and robotics.During COVID, Andrew built and scaled Project N95 to 250 people in three months, serving as the national nonprofit clearinghouse connecting healthcare providers with vetted PPE suppliers. This mission-critical experience shaped his understanding of supplier management at scale.KEY TAKEAWAYS:Why meeting suppliers where they are matters more than forcing new logins: SMEs typically have little leverage with 80% of their supply base, so solutions must operate via email (the lowest-friction communication layer) rather than requiring suppliers to adopt portals they'll never prioritise.How plugging into ERPs as a boundary layer beats building standalone platforms: ERPs are your system of record. Leverage AI sits as middleware between your internal workflows and external suppliers, enriching data without ripping-and-replacing, which is why it actually gets adopted.Why AI works best in the invisible layers, not the interface: The real value of agentic workflows is automating data collection, email processing, and research, leaving humans to make decisions with perfect information rather than replacing human judgment entirely.How supplier scorecards powered by real-time data change negotiations forever: Live performance metrics (on-time delivery, change requests, cost trends, benchmark comparisons) give you fact-based leverage in supplier conversations instead of gut feeling or quarterly surveys.Why surfacing hidden errors is a feature, not a bug: Customers often see more problems when they first implement visibility, but those are mistakes that have been costing them cash for years. The software finally makes them visible.How procurement elevates from order-taker to strategic adviser: When AI handles PO admin, your team moves from data entry to supplier negotiations, working on relationships and alternative sourcing. That's the work that actually moves the needle on cost and risk.TIMESTAMPS:[00:03] Andrew's Background: From Aerospace Engineer to Supply Chain Problem-Solver[03:15] Project N95 and the Light Bulb Moment: Why Supply Chain Visibility Became Mission-Critical[06:41] Why Email Still Wins: The Friction Problem in Enterprise Adoption[13:58] The Dirty Jobs Approach: Why PO Management Is the Wedge to Solve[22:14] How AI Actually Works in Leverage AI: Automating Data, Not Decisions[31:06] Industry Profile and ICP: Who Uses Leverage AI and Why It Works[32:33] Customer Surprises: Time Savings, Scorecards, and Hidden Errors[37:06] The Future of Procurement in 2030 and BeyondRESOURCES & LINKS:Connect with Andrew Stroup on LinkedInCheck out Leverage AIDownload our Tech Map for EnterpriseDownload our Tech Map for Mid-MarketDownload our Tech Map for SMEsFind your perfect procurement tech solution in our Software Finder appSign up for the Entproc NewsletterBook an Intro Call and let’s talk all things Digital Procurement!Connect with James on LinkedIn

In this episode of The Procurement Software Podcast, James Meads welcomes Malin Schmidt, founder and CEO of Kodiak Hub, to discuss what it really takes to build a world-class SRM platform from the ground up.Malin brings an engineering and operations background to a space most founders enter from procurement itself, and that outside perspective has shaped everything from how Kodiak Hub's product is architected to how the company is run. This episode covers the full arc: from a niche supplier rating tool to a global execution platform, navigating the messy middle of scaling a SaaS company, and why the business case for SRM is finally getting easier to make.A wide-ranging conversation with a lot of hard-won founder insight, well worth your time whether you're building a procurement tech company or buying one.You'll learn why geopolitical disruption has shifted the SRM conversation from nice-to-have to business-critical, and how Kodiak Hub is helping procurement teams become truly AI-native.Key Takeaways:Why SRM only delivers real value when the stakes are high, specifically in direct material and manufacturing environments, where supplier performance directly hits operationsHow Kodiak Hub shifted its business case framing from ROI to cost of inaction, and why that resonates more with CFOs and CPOs in today's risk environmentWhat the "land and expand" model looks like in practice: starting with operational risk management and moving customers toward strategic, top-line value over timeWhy recruiting operators over C-suite titles is the right call at the growth stage, and how that shapes leadership decisions at around 100 employeesWhat Sweden's structural advantages (small domestic market, high tech adoption, institutional trust, social safety net) have to do with its outsized output of scalable tech companiesWhy the human touch in customer success is becoming more important as AI adoption accelerates, not lessTimestamps:[00:02] Malin's Background and Why She Founded Kodiak Hub[04:53] From Kodiak Rating to Kodiak Hub: The Rebrand Story[08:35] Scaling from 3 to 100 People: The Hardest Phases of Growth[16:37] Why Sweden Produces So Many World-Class Tech Companies[22:00] International Expansion: DACH, UK, and the US[29:52] Building the Business Case for SRM Software[33:34] AI, Bjorn, and What AI-Native Procurement Actually MeansAnd that wraps up another episode of The Procurement Software Podcast!Thanks again for listening, and do please leave us a review on Apple Podcasts or rate us on Spotify. Every one helps!We'll be back at the same time next month, so see you there.If you want to learn more about Procurement Software, check out the useful links below.Stay in touch!Connect with Malin Schmidt on LinkedInCheck out Kodiak HubDownload our Tech Map for Mid-MarketDownload our Tech Map for SMEsFind your perfect procurement tech solution in our Software Finder AppSign up for the EntProc NewsletterBook an Intro Call and let's talk all things Digital Procurement!Connect with James on LinkedIn